Pound stable ahead of Euro focused data

1 July, 2014

Tom Arnold

The week started fairly uneventfully with little movement on the markets yesterday. The Pound moved up slightly against the Euro, just recapturing some of last week’s slide following Mark Carney’s slightly negative comments about interest rate rises. Against the Dollar there was more movement with rates jumping up by almost a cent. This is viewed mainly as a result of the markets moving back to a more risk-on sentiment, with the safe-haven Dollar suffering as a result.

The other big news overnight was the RBA (Reserve Bank of Australia) holding their interest rates and remaining unchanged more broadly on monetary policy. This is itself was not very notable, but comments from them that they are uncomfortable with the strength of the Aussie Dollar, raises the spectre of intervention in the near future, which if done correctly could see a move away from the multi-year lows for buying the Aussie – watch this space if you are looking to transfer money to Australia.

Closer to home we have UK and European manufacturing data and European unemployment figures this morning, followed by similar manufacturing data from the US this afternoon. As discussed in yesterday’s video report, this week is likely to be very Euro focused, so those with a Euro requirement upcoming would be well advised to stay in close contact with your CI account manager to be kept informed on what is happening and how it is going to impact your exchange.